Stellantis’ John Elkann: Automakers Should Avoid Defense Industry

Stellantis Chairman John Elkann made it clear that Europe’s automakers should not shift their focus toward the defense industry. Speaking before the Italian parliament, Elkann emphasized that while the U.S. and China maintain strong defense and automotive sectors simultaneously, European manufacturers don’t need to blend the two.

“We don’t think the future of the car is the defense industry,” Elkann stated. “The automotive sector must focus on innovation, sustainability, and meeting the needs of consumers, not military applications.”

His comments come as Italy’s government considers a new industrial plan to strengthen ties between automotive, defense, and aerospace industries. Industry Minister Adolfo Urso has hinted that the initiative will be unveiled in June.

Elkann, whose family founded Fiat and holds a significant stake in Stellantis through investment firm EXOR, also confirmed that Stellantis will invest €2 billion ($2.2 billion) in Italy this year. This move is part of a broader strategy to boost production in the country following the departure of former CEO Carlos Tavares.

“This year will be challenging,” Elkann admitted. “However, by 2026, we expect production in Italy to increase, thanks to 10 new product updates.”

Despite these efforts, tensions remain with Italy’s government. The League party, part of Prime Minister Giorgia Meloni’s coalition, criticized Stellantis for prioritizing foreign investments and focusing too much on electric vehicles (EVs).

The League stated, “Elkann should apologize to Italian workers,” arguing that Stellantis’ strategy is hurting local jobs.

In 2023, Stellantis produced fewer than 500,000 vehicles in Italy, a sharp decline from 751,000 in 2022. Car production reached its lowest level since 1956, adding to concerns about the company’s direction.

While Stellantis navigates political challenges, Elkann remains committed to keeping the automaker focused on its core mission: producing vehicles that drive the future—without detouring into military manufacturing.

Source: Reuters